Training Outside India- Implication under GST

[Shiv Tomar]

The company is sending the pilots (which are on the permanent payroll) outside India for training purpose. The invoice is raised by the service provider who is situated outside India to the aviation company. Is aviation company liable to pay GST under RCM on this transaction ??

 

AI Summary

Aviation Company Exempt from GST on Pilot Training Abroad Under Section 13(3) IGST Act, 2017 An aviation company queried about the applicability of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for training services provided to its pilots outside India. The consensus among respondents was that since the service provider is located outside India and the training occurs there, the place of supply is outside the taxable territory, thus RCM does not apply. This aligns with Section 13(3) of the Integrated Goods and Services Tax Act, 2017, which states that services performed outside India are not subject to GST. The transaction does not meet the criteria for the import of services.